CrowdProperty, an online property lending platform, has raised 103% (£414,271) of its £400,009 target via Seedrs (at the time of writing) from 403 investors with 5 days left in the firm’s crowdfunding campaign. CrowdProperty has utilized the services of Seedrs multiple times in the past. The pitch went live on Seedrs last month.
CrowdProperty recently announced that it had topped 3000 homes financed worth around £680,000,000, originating over £375,000,000 of financing facilities and lending more than £299,000,000 to date. CrowdProperty has previously reported that it has turned the corner on profitability, but additional growth capital will help it scale faster
Located in Birmingham, CrowdProperty operates in the Property / Digital (Mixed B2B/B2C) sectors. Incorporated in November 2013, the firm reports a Valuation (pre-money) of £41.9M; Type Equity; Share price: £28.13; Equity offered: 0.98%; Tax relief N/A.
Business highlights are as follows:
- Funded £665m of property projects and 2,988 homes
- 55% YoY growth in finance facilities agreed (totalling £368m)
- Three years running in FT1000 Europe’s fastest-growing companies
- Profitable*; fundraising to fully fund a new 3-year strategy
Key features include Secondary Market; Seedrs nominee min. £28.13 +; Direct investment min. £25,000.00 +.
According to the firm, there’s currently “a housing crisis in the UK and developers have for years been held back by the challenge of raising finance for their projects.”
Their mission is “to unlock the potential of small and medium-sized property developers to build more, much-needed and under-supplied homes by transforming property finance.”
They help developers “grow their businesses quicker and drive spend in the economy on labour, materials, and services.”
CrowdProperty claims it is “the UK’s leading specialist property development lending platform – a multi-award-winning, profitable and disruptive Fintech/Proptech innovator with a scalable, customer-centric approach to the property development finance market.”
As clarified in the update, this is based on unaudited management accounts
According to the company, property expertise is “at the heart of the business, and their team’s 300+ years of property development experience means they deliver finance with the speed, ease, certainty, transparency and expertise that developers crave to help them succeed – ‘property finance by property people’.”
As noted in the update, CrowdProperty explains that it “charges borrowers arrangement fees of 1.5-3.0% and a lending margin of 1.5-2.5%pts p.a., with a cashflow structure that ensures stability in the unlikely case of needing to fund the wind-down of the loanbook.”
Loan economics are “laid out transparently on their website statistics page.”
By successfully building routes to market, they have “received over 11,500 applications worth over £11bn with more than 13,000 registered developers.”
This builds market position and the “potential for a large and profitable lending business” with powerful economies of scale:
- Low cost of acquisition
- High customer lifetime value
- A market-leading developer database
- Closer and value-adding borrower due-diligence to select the right projects
- Tighter and value-adding monitoring to increase the success of projects
- Data/analytics advantage with machine learning models
- Long-term customer relationships to help grow and grow with
- Potential for many further monetisation opportunities
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